• Last Updated:
  • Nov 1st, 2017 11:50 pm
[OP]
Deal Addict
May 7, 2006
1755 posts
20 upvotes

Selling investment property

We have a small mixed residential commercial building we are planning to sell. What happens to the commercial lease when it gets sold to the new buyer?
2 replies
Sr. Member
Oct 6, 2015
791 posts
399 upvotes
Depends on the lease. Some lease obligations are structured in ways that they form a charge against the building itself, and would be transferred with the building. In other instances, the lease becomes remains an obligation of the seller, and the seller may have to pay damages if the new buyer terminates the tenancy.

You'd want to discuss this with the RE agent and/or lawyer involved with the transaction. A renter may have considerable rights which survive the sale, which may give rise to damages against the seller.

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